Contact us
CALL US NOW 1-888-GOLD-160
(1-888-465-3160)

High Price of Gold Disrupting International Love

  by    0   2

The price of gold is up 26% for the year so far. Overall, the price increase is beginning to change investor portfolios, as more people consider buying gold and other precious metals. However, the hike in gold prices is also starting to influence governments and cultures all over the world, from Japan scouring the ocean floor for gold to Egypt changing its long-held marriage rites.

two gold wedding rings

Should’ve put a Ring on it

According to an Egyptian marriage tradition known as “shabka,” a groom is expected to buy an apartment and pay a dowry for the hand of his future wife. He’s also expected to bring the bling in the form of gold jewelry. However, this long time tradition may be changing due to the rise in gold prices. Many Egyptian grooms are complaining of the financial hardships of shelling out for non-practical items such as jewelry.

According to a BBC article, the “price for one gram of 21-carat gold has reached 445 Egyptian pounds,” (around $50 USD) at the time of the writing. This may seem like a trifle, but the Egyptian yearly median income is around $70,000 EGP. If the average Egyptian groom bought their intended just one simple 21-carat band weighing 10 grams, they would be spending more than 6% of their annual income.

A campaign against the shabka tradition is gaining support in Egypt, with some suggesting grooms buy silver as a substitute.

India Weddings Boon for Gold

As the second largest gold consumer on the planet (China is first), India is anticipating a big jump in gold sales with the start of the wedding season. In the last half of the year, festivals like Dhanteras take place which is a time for celebrating wealth. The December quarter usually “accounts for about a third of India’s gold sales.”

Currently, India has seen gold imports fall with the higher prices, but analysists expect wedding festivals and cultural events surrounding gold to jumpstart the country’s insatiable desire for the yellow metal. Low demand has been accompanied by record discounts and a rise in smuggling and scrapping of gold, according to The Times of India.

Whether you’re looking to buy your beloved a golden trinket or maybe diversify your portfolio, buying gold and silver bullion is a great investment for your future wealth or spouse.

Get Peter Schiff’s latest gold market analysis – click here – for a free subscription to his exclusive weekly email updates.
Interested in learning how to buy gold and buy silver?
Call 1-888-GOLD-160 and speak with a Precious Metals Specialist today!


Related Posts

Money Is Not Wealth

When governments started locking down the economy in response to coronavirus, the Federal Reserve sprung into action. First, it slashed interest rates to zero. Then it quickly launched what we’ve dubbed QE infinity. In effect, that meant printing trillions of dollars out of thin air and pumping them into the economy. Meanwhile, the US government […]

READ MORE →

The Fed Now Holds a Record Percentage of US Debt

The US government has borrowed $4.2 trillion in the last 12 months, pushing the total national debt to over $27 trillion. In order for Uncle Sam to borrow, somebody has to lend. So, who is buying all of these government bonds? Foreign and domestic investors, commercial banks and US government entities all buy US debt, […]

READ MORE →

Silver Investment Demand Expected to Hit Five-Year High

Physical silver investment is expected to surge by 27% this year, according to the latest data released by the Silver Institute. Demand for investment silver is projected to come in at 236.8 million ounces in 2020. That would mark a 5-year high.

READ MORE →

The Fed Has No Way Out

We have argued that the Federal Reserve has no exit strategy from this extraordinary monetary policy. In fact, it never could extricate itself from the extraordinary monetary policy it launched during the Great Recession. Today, we’re merely witnessing the same policy on hyperdrive. And there is still no way out.

READ MORE →

The Tragedy of Savings

Low interest rates are a boon to borrowers. Thus the Federal Reserve’s quest to hold interest rates artificially low during the current economic crisis. We’re told easy money will bolster the economy as consumers and businesses take advantage of low rates and spend. But if you’re trying to save money, this anything but a boon. […]

READ MORE →

Comments are closed.

Call Now